On the night of 1st November 2005, a major fire at a warehouse in Leicestershire, UK, destroyed clothes that were destined for a store, owned by fashion retailer Primark. The damage was estimated at tens of millions of pounds. At least half of the entire stock at the warehouse was destroyed in the fire, though fortunately, no one was injured. Some 15 fire engines fought the blaze in the 300 [m.sup.2] warehouse, which was operated by the logistics service provider, TNT NV. Witnesses told of how the fire engulfed the whole area in a matter of minutes, mainly because of the presence of flammable material in the warehouse. A fire service spokesman said: "It was full of clothes, so it was obviously going to spread very quickly. There is pretty much 100% damage to the building." Fortunately, Primark and TNT were fully insured for the stock loss and for business disruption. "It was the biggest catastrophe that you could imagine," commented a spokesman for Primark's parent company Associated British Foods (ABF). Yet, ABF's share price actually increased after the fire--perhaps partly because, at a stroke, Primark had effectively disposed of the stock, which was insured for its retail value, but also because of the swiftness and efficiency of the response to the disaster.
